Frito-Lay Halts Manufacturing at 55-Year Rancho Cucamonga Facility

PepsiCo announced it will cease manufacturing operations at its Frito-Lay facility in Rancho Cucamonga, California, ending over 50 years of production at the site. While manufacturing will stop, warehouse, distribution, fleet, and transportation functions will continue operating. The closure is part of a broader trend of plant shutdowns by PepsiCo amid declining consumer spending and increased costs, with the company noting weakened demand for its snacks despite efforts to reverse shrinkflation. Hundreds of workers are affected by the shutdown, and reports indicate some were laid off without options to transfer internally; severance pay reportedly amounts to about 10 weeks. The plant, historically linked to the Flamin' Hot Cheetos origin story, has been a significant local employer, but the company has not disclosed the exact number of impacted employees. PepsiCo faces challenges in its North American foods unit, with recent earnings showing declines and the company acknowledging ongoing efforts to turn the business around.